RAMSEY CROOKALL & CO
May 16th 2012
Morning Report
The FTSE 100 is down 1.07%, pushing lower, and falling below the 5400 level for
the first time since December, despite better-than-expected UK employment data.
The number of Britons claiming jobless benefits in April dropped by the sharpest
amount in almost two years, vs expectations for a 4500 rise. Meanwhile, the unemployment
rate fell to 8.2%, against expectations it would stay at 8.4%. Heavily-weighted miners
are the biggest drag on the index.
Some heavyweight constituents were weighing on London's benchmark after trading without
the right to their latest dividends. These ex-dividend stocks include Glencore, Morrison,
Polymetal, Sainsbury and Whitbread.
Miners were once again bearing the brunt of the risk-off attitude that has gripped markets
over the last week as metals prices continue to fall. Xstrata, ENRC, Fresnillo, Kazakhmys
and Rio Tinto were among the worst performers. Both Xstrata and Glencore were also being
pressured lower by downgrades from UBS.
Just a handful of stocks were making gains on theFTSE, with utilities group SSE being one
of them after the group upped its full-year dividend by 6.8% following a 2% rise in
adjusted pre-tax profits.
Royal Bank of Scotland was suffering losses after Exane BNP Paribas cut its target price
for the stock by an eighth. Barclays and Lloyds were also in the red.
Catering firm Compass fell despite posting results that were slightly better than expected,
driven by new business wins and a high rate of contract retention.
A drop in trading volumes due to ongoing economic fears has hit revenues and profits at
the interdealer broker ICAP in the year to the end of March, causing shares to fall.
THE FTSE 100 @ 10:00 Down 47 @ 5,389
THE DOW JONES closed Down 63 @ 12632
THE NASDAQ closed Down 8 @ 2893
Exchange Rates
GBP – USD @ 10:00 1.5957
GBP - EURO @ 10:00 1.2549
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